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Dáil Éireann debate -
Thursday, 1 May 1941

Vol. 82 No. 15

Committee on Finance. - Minerals Exploration and Development Company Bill, 1941—Second Stage.

This Bill, Sir, may be described as the complement of the Slievardagh Bill which was recently passed by the Oireachtas, and which is now an Act. That Act was passed for the purpose of setting up machinery for the development of our coal deposits. The purpose of the present Bill is to secure that other mineral deposits shall be developed also. The two Bills have many features in common, and the same set of circumstances may be said to have called them into existence: that is to say, the necessity for turning to account such mineral resources as we possess, and the slowness—perhaps I might even say the failure—of private enterprise to develop them effectively and efficiently. In form, this Bill is similar to the Slievardagh Bill. Mutatis mutandis, the provisions of Part I of this Bill follow very closely the provisions of that measure. As in the case of Slievardagh, the Minister for Industry and Commerce is being authorised under this Bill to register a company under `the Companies Acts, and he is being authorised to do that for the same reason as obtained in the case of the Slievardagh development— that is to say, that the work to be done could not be done, effectively at any rate, through the ordinary machinery of the Civil Service. The share capital of the proposed mining company, like the coal company, will be for a nominal amount only. The further moneys needed by the mining company will be provided by way of repayable advances, which was also the procedure adopted for the Slievardagh project. The amount of advances is likewise limited. In the case of Slievardagh, the limit was £100,000. In the case of the present company it is £50,000 only. The sums needed from time to time for advances will be borne on the Vote for Industry and Commerce. This course will give the Oireachtas a periodical opportunity to discuss the affairs of the company and the manner in which it is fulfilling the purpose for which it is being established.

The task which will be entrusted to the company is, broadly, the task of ascertaining what mineral deposits in Ireland are worth developing, and, in certain cases, of making arrangements to work such deposits. We cannot say precisely at the moment what we possess in the way of minerals, or whether such mineral deposits as we have here are of appreciable value. It is true that mining surveys have been made on behalf of the State, or by private individuals, of certain of our deposits, such as the coal and iron deposits at Arigna, the coal deposits at Slievardagh, and the gypsum deposit at Kingscourt, but about the generality of our mineral resources our knowledge is limited to the surmises which we may base on certain recorded indications of the geological structure of our country. These indications manifest the presence of certain minerals. They tell us of their existence, but we know very little about their extent or accessibility. Our knowledge is so limited that nobody can tell whether they are there in great measure or in small, or whether, in fact, they are worth developing at all. Neither, I should emphasise, can anybody say that they are not worth developing.

The primary task, therefore, to be undertaken by this company is to examine the deposits which have not, as yet, been examined, to report to the Minister which of them seems to be capable of economic exploitation and, possibly, to commence the work of exploitation. I am sure that it will be generally conceded that any mineral deposits in Ireland which can be worked with profit should be worked. Personally, I should go further and say that any mineral property which is capable of being worked in such a way that the enterprise will pay its way should be examined and developed.

An idea has gained currency that there are no minerals in Ireland worth developing. That is a view which, I submit, should not be accepted without searching investigation. I do not know how far that may be from the truth, but it may be as far from the truth as the idea that the country is exceptionally rich in mineral resources. It will be the task of the company to be formed under this Bill to undertake, or to cause to be undertaken on its behalf, the investigations which will eventually lead to the elucidation of the true position in this matter. In the meantime, we should bear in mind the probability that the idea that there are no deposits in Ireland capable of economic exploitation had its origin in the fact that the many mining enterprises which flourished in Ireland in the early part of the last century have faded out of existence. We ought to remember in that connection that mining technique has advanced considerably within the last half century. New methods for the treatment of ores have been evolved. Lodes, which were regarded as worthless some years ago, can now be worked at a profit. Indeed I might point out that one of the factors responsible for the abandonment of some of the Irish mineral enterprises was the difficulty in former years of separating mixed minerals of close specific gravity. Hence, deposits of disseminated sulphides of copper, lead, zinc, and iron with barytes were exploited for lead and the remainder abandoned. That was so in the case of the Avoca deposits and the Glendalough deposits. Such ores can now be worked profitably to provide a four or five product recovery by selective flotation—a process which has been developed very considerably within the last two decades. Thus there is a possibility that some of our abandoned mines may still have productive lodes of low-grade mineral, and may still hold extensive bodies of part-developed ore which, though quite unprofitable with low metal prices and simple gravity concentration, may now have quite a different value, if worked under modern organisation with new systems of mineral separation.

In this regard I put the matter no higher than to say that there may be a possibility that self-supporting mineral enterprises can be established in Ireland. That possibility, however slight, the State, particularly in present circumstances, cannot afford to neglect, and, therefore, is bound I think to take the risks involved in proving it or not. Even if it happens that the results of the prospecting which it is proposed that this company should undertake turn out to be disappointing, the money sunk in the prospecting will not, in my opinion, have been spent foolishly. We shall at least have cleared up this matter once and for all, and the information acquired, even if unfavourable, will at least prevent the loss of larger sums in later years. If, on the other hand, two or three successful mines are started, the enactment of this Bill and the expenditure of the moneys which the Dáil will be asked to provide for its administration will be justified, in my view, many times over.

But the task of the company will not be confined to the examination and development of deposits which are now lying dormant. The provisions of Part III of the Bill empower the Minister for Industry and Commerce to take over as a going concern on behalf of the company mining enterprises for the purpose of obtaining adequate quantities of commodities which are essential to the life of the community. The impossibility of getting from abroad at the present time many minerals which were imported freely in the past makes it absolutely necessary to look for substitutes for those materials here in Ireland. If the substitutes are in the hands of private persons, and if, for any cause, supplies of them are not being delivered in the quantities needed, it is, I submit, the clear duty of the State in present circumstances to intervene. Such properties as, under the provisions of Part III, may be taken over from private persons in whose hands they now are, will be handed for development to the new company.

The dispossessed owners of those properties will, of course, be entitled to compensation, but there are in the Bill clauses setting out how the amount of that compensation is to be arrived at. In default of agreement it will be fixed by the Mining Board set up under the Minerals Development Act of 1940. The powers given to the Minister under Part III of the Bill are admittedly wide. They are necessary, however, if the purpose of the Bill is to be achieved, and the powers given to the Minister to acquire going concerns are hedged round, I think, with enough safeguards to satisfy even the most conservative among us. The Minister's powers are strictly circumscribed. The only businesses which he will be authorised to acquire are businesses engaged in the production of commodities essential to the life of the community, and then only when those commodities are not being produced in the quantities needed by the community.

Another point to remember is that circumstances to-day are not normal. At the present time they are such that the State will have to do many things which it would hesitate to do in normal times. In normal times, for instance, there is seldom necessity or justification for interfering with the way the private individual manages his own property. His interests and the interests of the State and of the community as a whole can coincide in a large measure. In times of crisis, however, like the present, the private individual may move more slowly than the interests of the community demand, and personal rights and personal privileges cannot be protected beyond the point where they can be reconciled with the good of the community. I do not think there is much need for me to elaborate this point. We have had one or two precedents illustrating it within the past 18 months or so. Indeed, ever since the outbreak of the present European War the farmers, for instance, have not been permitted to do as they like with the land which they own. They are being compelled to put portion of it under tillage.

Recently, the county councils and other local authorities were empowered to acquire turf banks which were not being worked. We could even find a precedent for the provisions in this Bill dating back prior to the war. The Act under which the Electricity Supply Board was set up, for instance, authorised that board to acquire as going concerns small electricity undertakings which were being carried on with profit throughout the country, but which it was felt the common good required should be merged in the larger undertaking. Therefore, while I admit that the powers which it is sought to confer under Part III of this Bill are drastic, they are not unprecedented, and I do not think they are any more than the circumstances of the times demand.

Or even normal times.

On that, Deputy, you and I would differ very greatly. To come to the principal provisions of the Bill: Section 4 provides for the formation and registration of the company. Section 5 prescribes that the share capital of the company shall be £100 divided into 100 fully paid shares of £1 each. It likewise provides that the money payable for those shares shall be paid out of and charged on the Central Fund. Section 6 prescribes the content of the memorandum of association of the company, and sets out the specific objects of the company as follows: (a) to prospect for minerals wherever situated or suspected of being situated within the State; (b) to develop and work any minerals which the company deem advisable to work; (c) to acquire from the Minister and to carry on and develop any existing business which has been acquired under this Act by the Minister; and (d) to make marketable and sell or otherwise dispose of the minerals worked by the company.

Section 7 prescribes the content of the articles of association, and among other things provides that the articles shall fix the number of the directors of the company so that they shall not exceed seven, including the chairman and managing director. It further provides that the chairman, the managing director, and all the other directors shall be appointed by the Minister for Finance after consultation with the Minister for Industry and Commerce and with the Minister for Agriculture. Section 8 deals with alteration of the memorandum and articles of association. Section 9 empowers the Minister for Industry and Commerce to advance to the company a sum not exceeding £250 towards the expenses of formation. Section 10 provides that it shall be lawful for the Minister to advance to the company out of moneys provided by the Oireachtas a sum not exceeding in the aggregate £50,000. Section 11 provides for payment of interest on advances to the company. Section 12 provides for repayment of advances by the company.

Section 13 gives power to the Minister to require the company to prove a particular prospect and in that connection also it empowers the Minister to pay to the company, in respect of such proving operations a sum, or sums, not exceeding £3,000 in any one financial year. Section 14 defines the powers of the Minister for Finance as shareholder. Section 15 provides that the shares in the company shall be held in trust for the Minister for Finance. Section 16 provides that dividends shall be paid into the Exchequer. Section 17 obliges the company, within 90 days after the end of every accounting year, to furnish duly audited balance sheets and accounts to the Minister and it further provides that a copy of every balance sheet and profit and loss account shall be laid by the Minister before Dáil Eireann within one month after such balance sheet and profit and loss account have been furnished to him.

Part III of the Bill deals with the acquisition of existing mining businesses by the State and, as I have already emphasised, it empowers the Minister, whenever it appears (a) that, for the purposes of obtaining in adequate quantities commodities essential to the life of the community, the common good requires that the working of any particular deposit of minerals should be controlled by the State, and (b) that, to secure to the State effective control of the said deposit of minerals, it is necessary that the Minister should acquire a particular existing mining business, either to acquire such existing mining business by agreement with the proprietor or, in default of agreement, to acquire it by compulsion.

Section 19 prescribes the manner in which the property of the company so acquired shall be dealt with. Section 20 provides for notice of proposal to acquire an existing mining business, and Section 21 sets out the contents and operation of mining business acquisition orders to be made under Part III of the Act. Section 22 obliges the company to pay compensation in respect of existing mining businesses acquired by order. Section 23 prescribes the manner in which applications for compensation in respect of mining businesses acquired, may be made. Section 24 lays down the basis upon which compensation in respect of mining businesses acquired shall be assessed. It provides that this compensation shall be assessed in accordance with (a) the fair value of the existing mining business as a going concern and (b) the fair value of the goodwill of the said business and of all property and assets. The section also provides that in assessing this fair value account shall be taken of all sums granted out of public moneys to the proprietor of the business for the purposes, or any particular purpose, of the business to be acquired.

Over any period?

Over any period— there is no limitation. Section 25 provides for deductions from compensation payable in respect of an acquired mining business of debts due to the State. Section 26 provides for the lease or licence to the company of acquired minerals where existing mining businesses are taken over. These are the principal provisions of the Bill. I think they are essential if these vexed questions of our mineral resources are to be cleared up. They are essential, too, for the even more important reason that every effort must be made to utilise to the full such of our mineral resources as will provide us with vital materials during the present restrictions upon the normal channels of our supplies. Accordingly, I recommend the Bill to the House.

If there were to be any objection offered to the introduction of this Bill, it would be that it is at least two years late. It would have been much better if the Minister had brought this or a similar Bill before the House a couple of years ago. The Minister was not very specific. We had, if I might say so, a good deal of vague generalities and I am wondering even now whether it is meant seriously to tackle this problem in any way other than merely tinkering with it.

The Minister stated that he is empowered by the Bill to require a company to prospect. They are to go out prospecting for minerals and they are limited to a maximum expenditure of £3,000 in any one year for that prospecting. I will admit quite frankly that my knowledge of prospecting is almost nil, and my knowledge of mining of any description is something the same, but, speaking with all my ignorance on this particular subject, I do not believe one can do very much prospecting on £3,000 a year. There is a company prospecting and boring in my constituency for the last eight or ten years. It is commonly reported that there are valuable deposits there. There must be, because this big mining syndicate had a very big staff when it started, and during all these years has maintained a skeleton staff, including a resident engineer but, so far as I know, the company has not yet attempted to put any commodity on the market, or any of the deposits that are supposed to be in the locality. I have been told that that syndicate has spent at least £40,000 during the last eight or ten years.

I should like if the Minister had given us a little more information about the £3,000 per year that is to be spent, but not exceeded, or told us what prospecting can be carried on for that sum. I should be more than surprised if prospecting could be done in a big way for that amount. The Minister might have told us a little more about that matter. He stated that some people believed we were very well-off in the way of mineral deposits, while others believed we were not. He spoke as if we were starting out for the first time to ascertain whether, in fact, we had any minerals worth developing. Surely it is well known that considerable sums of money have been spent on research and on prospecting within the last 25 years, and that there are available in the Department the results of such work.

The Minister should have been able to indicate to the House that there were certain minerals which gave fair prospects of being worked successfully, to which this company might apply itself immediately. If we were to take the Minister's speech we would have to come to the conclusion that we were now setting up a company to inquire into our mineral deposits and to prospect to see if they could be worked, and that we might hope to have something in the way of development within the next five or 20 years. I dare say the Minister did not intend to create that impression, but that was the impression I formed. I should like to know (1), how soon this company will be formed and set to work; (2), if the Minister can tell us if there are any particular areas in which work will be started immediately the company is formed, and (3), if he can indicate to the House what particular type of minerals the company will inquire into or prospect for at the beginning.

I do not think the House will object to giving this Bill to the Minister, or object to giving the Government the very wide powers set out in Part III. I know one or two parts of the country where there are valuable deposits that are supposed to be in process of being worked by private individuals. In one case there is a very valuable deposit, and it will probably be much more valuable when the present war ends. As far as I know that deposit may be worked at a profit to the owners, but it is being worked in such a way that there will be an absolute loss to the nation. The working simply consists of taking deposits that are nearest the surface, because they can be most easily reached, in the least expensive way, while the refuse is being piled up mountains high and most valuable deposits that are further under the ground are left in such a condition that it would now be hopelessly uneconomic to look for them. That is not an isolated case. I know of two or three places where that has happened. If the owners got fair compensation it would be in the interests of the nation to acquire such deposits. I hope also that some inquiry will be made into the activities of the company I referred to in my opening remarks, where a skeleton staff has been maintained for boring or whatever work is done when prospecting and testing, during the last eight or ten years, and where yet, as far as I know, no attempt was being made to market these deposits.

A number of minor points will arise more properly on the Committee Stage, concerning certain sections but, as far as the general principle of the Bill is concerned, I welcome it. If I have any complaint to make it is that it was not introduced before now, and that the Minister did not give any indication in his speech concerning the amount of money that it is proposed to provide that this matter is now going to be tackled in the big way necessary, if we are going to get any real value for money so expended, especially at a time when we require it, perhaps far more than in the future. Finally, may I again utter the word of warning to the Minister that I uttered on the Slievardagh Bill, that on the formation of this company political affiliations will not be taken into consideration, and that whoever may be selected to carry on the work will be selected because of their expert or technical knowledge and not because of any political affiliation.

That may appear to be a very small point to some Deputies, but really it is a very important one, because companies such as this, and the one set up to develop the coalfields at Slievardagh, unless they have the full confidence of this House and the public when the Government were given these very wide powers, and are satisfied that they will pass into the hands of the best qualified men that can be got, then I am afraid we are not going to get 100 per cent. results.

I welcome this Bill if it is to be taken as an indication that widespread and beneficial activities in the way of exploiting our mineral deposits are to be undertaken by the State; but one would not gather from the Minister's statement this evening that this Bill is a prelude to any intensive or extensive mineral exploratory work. Some of the statements of the Minister convinced me, at all events, that such work as will be undertaken under the Bill will be of a rather circumscribed character, and the finances made available to the company under the Bill will be such as to restrict considerably the activities of the company. For instance, the Minister mentioned that the capital of the company would be £100, that there would be £250 for formation expenses, that the State would put up money to the extent of £50,000 and that, in any one year, the State would give grants not exceeding £3,000. If one has only a fragmentary knowledge of mining—and that is all that is necessary for the purpose of making the comment I am about to make—one must realise that £50,000 would not carry on any extensive mineral exploitation, and £3,000 for certain research work or development, which may presumably include the sinking of bore holes, would not enable more than about half a dozen or eight holes to be sunk, if the Minister is paying the entire cost of all these bore holes. We may take it that a bore hole would cost £500, and it may very well cost more, depending on the depth to which it had to be sunk, but the suggested spending of merely £3,000 in the year on that type of work seems to indicate very limited activity for the company.

I think that in that regard the Deputy misunderstands the effect of Section 13.

I was not helped in understanding it by what the Minister said, or did not say.

Perhaps not.

As a matter of fact, what the Minister said about this Bill was not nearly as important as what he left unsaid, and I congratulate the Minister on a skilfully evasive speech here this evening. This is a very substantial Bill and anybody reading it can see clearly that very wide powers were taken and almost every conceivable difficulty examined when the Bill was being drawn; but what puzzles me is how the authors of the Bill could envisage the necessity for such wide powers without having first thought out the circumstances under which these powers would be utilised. We might have had from the Minister some indication as to the actual circumstances which prompted the introduction of a Bill of this kind.

Are there any deposits throughout the country which could be worked advantageously by the State? Are there any deposits which could be worked much more beneficially by the State than they are being worked by private owners? If so, what are they? In what regions do they exist and what type of activity does the Government contemplate following the passage of the Bill? The Minister this evening was delightfully vague. He told us of the desirability of having these powers in existing circumstances, and of the necessity of giving power to the State to take over certain private undertakings which were not being effectively worked; he told us of the precedents which had been established for that course in previous legislation, but he never once came anywhere close to indicating what precise type of activity the State had in mind following the passage of the Bill, or what type of mineral it was intended to mine when the Bill was passed.

I think the Minister should be more candid with us and should tell us what exactly he had in mind when it was decided to draw a Bill on these lines, and what type of activity we can reasonably expect this company to undertake during the next 12 months. I should like to ask the Minister at this stage if it is intended that this company should cover coal-mining?

No. I made that clear at the outset.

The manner in which the Minister used "minerals" led me to believe that it might also cover coal, but we ought to have from him some indication as to what type of mineral exploratory work this company is going to undertake, what type of minerals it is going to exploit, where they are and what benefit he hopes is likely to accrue to the State from the passage of the Bill. The fact that only a relatively small sum of money is being spent on the company seems to me to indicate that the company's activities will not be widespread, and, at a time when we are probably quite unable to get any type of mineral into the country, it seems to me desirable that the activities of the company should be much more widespread than contemplated by the Minister in his speech, and that the extent of its finances should be much greater than that foreshadowed by an advance of £50,000. The Minister should give us some more details as to what is intended by the passage of the Bill. In so far as it will lead to the full exploitation of our mineral resources, I am in favour of it, and the Minister will get all the powers he requires, if he can assure the House that these powers will be fully utilised to win for our people such minerals as we have in the country to-day.

I should like to express the hope that, in future, all the exploitation of minerals which is going to be carried out in this country will be done by the State, and not by "get rich quick" individuals. I think anybody reading the papers last week will agree that that should be so. I have had, on a number of occasions, to stand up here and speak with regard to the way in which one particular company, a County Cork company, was carrying on, and I pointed out the manner in which money was being shoved into people's pockets. I got up here, as I say, at least a dozen times during the past six or seven years to call attention to the manner in which that company was acting, but, despite that, we find that, blindly, year after year, grants of thousands of pounds were given, until, as a wind-up, a gentleman from Dublin and a lawyer make off with £28,000 of the State's money. These are ordinary, plain facts that have to be faced. Every time a little money came in——

I have no wish to interrupt Deputy Corry, and I have no interest whatever in the matter of which he speaks, but, purely from the point of view of order, may I submit that it is grossly disorderly for the Deputy to make the references he has made? I do not know anything about these people or about the company, and I have no interest, good, bad, or indifferent, in it, but with respect, Sir, I think that is a line that should not be followed.

I did not catch the connection very clearly, but if the persons mentioned could be traced from the references made, and if they, personally, are accused of having got away with £28,000, I think it a rather improper remark for the Deputy to make.

They were published in the paper, anyhow, as having got away with £28,000. Unfortunately, when you form a company, you cannot be put in jail as easily as could the ordinary offender.

I think the Deputy is materially wrong, and he will have to withdraw his remark. The company lost so much money, but it does not follow that individuals got away with the money. The Deputy will have to withdraw his remark that certain individuals got away with that money.

I do not see how I can withdraw it. I am stating plain facts. If this is a place where the truth cannot be spoken, the best thing Deputies can do is to stay at home.

If Deputies were to stay at home every time they failed to speak the truth here——

Deputy Morrissey has the very happy knack of never speaking the unvarnished truth, so that he can stay here always.

In the opinion of the Chair, it is not a remark which should be applied to individuals, and the Deputy should withdraw it as applying to certain individuals.

I take the same view as Deputy Morrissey takes. It is very unfortunate that reference has been made to this company in the way in which it has just been made, because, in my view, undoubtedly the two individuals referred to could be identified.

In that case, the Deputy will have to withdraw his remark.

In deference to the Chair, I withdraw it. Still, I have my own opinion and the people of the country have theirs. The fact remains that, on each occasion on which a grant of money was given to this company, a bunch of Englishmen were brought over at £5, £6, and £10 a week to spend it. The mere Irish got 24/- for digging out the stuff. As soon as that grant was gone, the Englishmen disappeared until the next grant came along. Then they were "resurrected" in whatever slum they were. In fact, £28,000 of the people's money were sunk in this undertaking without any return to the country, unless we consider the 24/- a week dole which the unfortunate devils got for digging out the stuff. I wonder where the Minister stands with regard to mineral rights. I understand that mineral rights covering 30 miles in circumference in that area were bought for £100. I do not say how much they were exploited for afterwards by the most respectable gentlemen over whom Deputy Morrissey has thrown his mantle here.

I should like to make an appeal to Deputy Corry. There is no question of throwing a mantle over anybody in this case, but there are certain decencies which ought to be preserved in debate in this House. Speaking as a friend of Deputy Corry, I should rather he would not continue in this strain. We can all have our views about the wisdom of certain things which have been done, but there is no point in holding private individuals up to public obloquy in this House.

Unfortunately, there appears to be no Estimate on which one could deal with the wisdom, as the Minister put it, of the manner in which the repeated moneys these people got hold of were spent.

It is not these people who are to blame; it is the Government who gave the money to them. Why not blame the Government?

There is no means by which you can deal with the spending of these moneys.

On the Estimate.

There is no particular Estimate on which it can be raised.

The Minister's Estimate.

I beg your pardon. When these matters were raised on other occasions, we were brought face to face with the point that the Industrial Credit Corporation was a private company and that we had no responsibility for it here.

The Deputy is incorrect.

References to the Trade Loans Act or anything under it are out of order on this Bill.

This Bill is for the development and exploitation of minerals. I am expressing my dissatisfaction with the game that has gone on for the past ten years. I hope it is going to be finished under this Bill and that the means by which individuals bought a 25-mile radius of minerals for £100 and exploited them through a company for £10,000 or £12,000 are going to end. Unfortunately, these things happened. Unfortunately, the £28,000 is gone west. The individuals who were responsible cannot be brought to book except by public exposure, so far as that is possible.

Having dealt twice with these matters, the Deputy must now come on to the present Bill.

That has to do with the present Bill. I want to know from the Minister whether the minerals held by these private individuals—seeing that a receiver is now in the shop and that it is being sold out—will be taken possession of by the State and exploited under this Bill and whether, in future, some decent check will be kept in connection with these matters. In the first year, we had a sum of £2,000; in the second year £3,000, and then it increased to £7,000 and later to £10,000. They found a soft spot——

Not under this Bill.

That is the position of affairs which this Bill is brought in to remedy.

I should like to hear some positive criticism of the Bill from the Deputy, now that he has dealt with these past events.

I am giving reasons for the new Bill because these things happened. I want to express the hope that, in future, whatever minerals the State has will not be sold for £100 and then sold to a company for £10,000. I hope that, under this Bill, that will be kept under control.

The Deputy wants to see the minerals exploited rather than the Government.

I do not want to see any crooks on the job.

When the Bill for the development of Slievardagh mines was before the House, I had occasion to pay tribute to the very informative explanatory statement the Minister made when introducing the measure. I regret that, in connection with this Bill, we have not got much information as to its scope or the plans the Minister has in mind for the development of our mineral resources. I readily admit that it is very difficult to outline all the plans which the Minister may have in mind in connection with this development; there are so many different kinds of minerals which may be developed in different parts of the country and in so many different areas. I think, however, that the Minister should give us some indication as to what he considers the most important minerals for immediate development and the areas in which he thinks these minerals will be found. Reference has been made to the fact that the amount of money provided in this Bill is hardly adequate to enable the new company to undertake very extensive development work, but I think the amount is fairly considerable. The fact that this company is entitled to an advance of £50,000——

It is a lot of money.

It is a considerable amount and there is a serious responsibility on this House in passing this measure to entrust the company with that amount. Every member of the House should be satisfied that everything possible will be done to ensure that the best possible return will be given for the money. In being called upon to support the Bill, we are in a difficulty inasmuch as the majority of us have very little knowledge of mineral development. Consequently, it is very difficult to check up on the activities of the company and to ascertain whether the money is being spent to the best advantage or not. The most we can hope for is that the Minister and the Government will continue to be held responsible for the operations of this company. By holding the Government responsible, we can ensure that this money will not be wasted. We may also hope that the Minister, in appointing the directors of this company, will take the greatest possible care to ensure that the men appointed will be of the highest ability and have the highest possible knowledge and experience of this work. Every Deputy will place the responsibility on the Government to ensure that the greatest possible care is exercised in the selection of the directors of the company.

It is hardly necessary to emphasise the warning given by Deputy Morrissey to the Minister in regard to the appointment of political supporters. I do not believe for a moment that in this grave emergency the Minister will give any consideration to the claims of Party supporters. As a matter of fact, political affiliations are changing so rapidly at present that I think the Minister might have difficulty in deciding whom he might consider as associated with his Party. For that reason I do not see any great danger in that connection. The greatest danger is that the directors, when appointed, may not prove to be as efficient as the Minister hoped.

The Minister has not given any indication as to what areas he intends to develop or what minerals he is particularly interested in at the moment. But, having regard to the serious shortage of phosphatic manures for agricultural production, I should like to suggest that the Minister should pay particular attention to the development of raw phosphates wherever they may be found in the country. I understand that there is a limited amount of rich deposits in the County Clare. I have no knowledge as to what development has taken place there, but it is a matter of supreme importance at the moment. In County Wicklow, there are undoubtedly deposits of various minerals, lead, copper and ochre, not to mention gold.

I do not think, however, that the Minister would be inclined to exploit the gold deposits further than they were exploited a few years ago. With regard to the other mineral deposits in Glendalough and Avoca, I am sure the Minister is aware that very extensive work was carried out in connection with these minerals less than 100 years ago, and a large number of men employed. It would be a remarkable thing if there are not deposits still available in those areas. I ask the Minister, therefore, to include those areas which were so extensively mined in the past in the investigations of the new company.

I admit that it is extremely difficult to ascertain whether the best possible use will be made of this money or not. Deputy Morrissey referred to a private company which spent over £40,000 in ten years and has not put any minerals on the market. If this company, which is being promoted by the Minister, were to undertake that amount of expenditure without being able to show any results it would certainly be subjected to very severe criticism in this House. I think the Minister should give us some information as to the areas he intends to develop, and also some indication of the results of whatever research work may have been carried on by his Department.

I think that the Minister might usefully give the House a little more information on certain matters. It is not very clear whether this is going to be a company or a sub-department, because, from the way the company is to be formed, the principle of partnership, which seems to work well in companies everywhere when they are run as private enterprises, is left out of it. As to the directors, the Minister has not told us how he will appoint them, whether it will be by nomination, whether it will be according to qualifications and the particular business they are at present engaged in, or whether they are to be civil servants. That is a very important matter, but I am sure the Minister will appoint the very best men, and men who will be qualified to deal with the particular objects he has in view.

Sections 11, 12 and 16 provide for the payment of all interest on advances, dividends, etc., for the benefit of the Exchequer. It is hard to see, however, what interest the directors would have in making the business pay. The Minister has not told us what salary they are to get as directors or what return they will receive for the obligations he imposes on them under the Bill. The Minister might give us a little more, light on that matter. I suggest to the Minister that, if possible, he should introduce the principle of partnership so as to give an incentive to the directors to make the business a success. Suppose the Minister intended to pay the directors £200 a year. I am not saying that would be too much or too little. I would say that it would be very much better to give them £300, £150 of which would be given to them absolutely, and the remainder invested by them in the company, so that they would have an interest in advising the Minister what particular minerals should be developed.

I think that the principle which has been found successful in all companies should not be lost sight of by the Minister in setting up this company, unless it is really a sub-department, and I certainly would prefer a company to a sub-department. I think that the Minister should keep that object in view. I am sure he has taken all these matters into consideration. I am not in a position to direct him, because I know very little about the formation of companies, but I know that this principle has always been found to be successful in other companies and I think that if the Minister could introduce it into the formation of this company it would be beneficial.

I think no Deputy will disagree with the provision of money for exploring, prospecting and developing mineral resources. When I read the Bill I was rather interested and I felt that I was going to get some information on that matter. When listening to the Minister's statement on the Second Reading, I thought that the House would definitely get some information as to the possibilities of our mineral development and what was there to develop. I think that when the House is being asked to vote a sum of £50,000 the members are entitled to get more detailed information than has been given by the Minister who was astoundingly vague in his speech moving the Second Reading of the Bill. Beyond what is contained in the Bill, I got no additional information from the Minister's statement. I join with other Deputies in asking that the Minister, when replying, will make some attempt to indicate to the House what are the particular deposits or minerals that will get first attention from this company when it is formed. Can he tell the House what are the possibilities of making the undertaking a commercial success?

I agree with the Minister that there are, possibly, certain deposits which, in present circumstances, might be developed successfully on a commercial basis. Outside sources of supply in regard to many of our requirements are, at the moment, cut off. There is one deposit that, from the agricultural point of view, is of great importance. I refer to the phosphate deposit in the County Clare. So far as one can see, the possibility of importing raw rock during the coming season is very poor. If there is to be an expansion of our tillage operations next year, we shall need artificial manures. Unless these are made available, then I am afraid that in many areas there is going to be a very poor response to the appeal for increased food production. I am sure the Minister realises the importance of attending to that matter. If there are possibilities of developing phosphate deposits in the County Clare that work ought to claim the first attention of this company.

I desire to support what Deputy Hughes has said about phosphate deposits in County Clare. As far as I am concerned, this enterprise sets out upon its career with my best wishes. I would like to see it succeed. The best help it could get in that direction would be that it should have an initial success. If it goes out after three or four will-o'-the-wisps, a thing that has happened to many well-intentioned men, the public may get very sick of it and say: "This is another bog-hole down which public money is being poured." We all know that there is a phosphate rock deposit in the County Clare. We know that in normal times it might be quite uneconomic to work it. We also know that in the special circumstances in which we find ourselves to-day it would be eminently desirable to attempt to work it, because if it is not workable now it will never be workable. I think that is agreed. I suggest to the Minister that, when this company is established, this might very properly be one of the first things to which it would turn its hands, because if that deposit is not workable, then I think there are few mineral deposits that will ever be found in this country which, in normal or abnormal times, will ever be capable of rational exploitation.

Reference has been made to the Cloyne Colloidal Clay Company. We must not expect from Deputy Corry, when speaking, the language of civilisation. If we hear sounds that remind us of the simian gibberings of Central Africa that will not astonish us, but that company, seeing that its history has been mentioned, provides a yard stick whereby to determine whether public funds which have been lent for mercantile enterprises have been properly or improperly used. I think that where we can establish in this House that the directors of any company have applied to the Government for the loan of public funds and it transpires that these funds have been recklessly lost, without any contribution from the persons responsible for losing them, those persons are on the defence to prove that they acted bona fide, but, where the facts are that certain persons approached the Government for financial assistance, in accordance with the generally laid-down policy of the Government, to exploit domestic deposits and domestic potentialities and that they themselves lost sums in the work proportionately far greater than the Government's losses, then prima facie they were acting in good faith.

I do not think that the best friends of the Cloyne Colloidal Clay Company could maintain that the affairs of that company were prudently managed. I do not believe that the losses sustained would have been sustained if a higher efficiency in operating the company had been shown. I think that the directors and members of that company would welcome a very close investigation into the financial affairs of the company, because such an investigation would reveal the fact that, substantial though the Government's losses were, the losses sustained by individual persons in the enterprise and by individual shareholders were proportionately far greater than the Government's losses. So far as I am concerned, where that can be established, even though I may deplore the lack of business acumen in the men who undertook the enterprise, it ill becomes those who never lost a penny in an attempt to exploit any potentiality in this country, and never spent a penny of their own money in the service of this country, but rather spent all their lives a charge, directly or indirectly, upon public funds—persons who would be in the bankruptcy court, or in the poor house, if they had not the opportunity of drawing on public funds—to hold up to public odium those who ventured their savings in an enterprise which they believed would benefit not only themselves but the country, and lost their savings in the process of doing so. The last point I want to put to the Minister is this: Does he undertake to answer to this House for the activities of this company?

On the Estimate for my Department, yes.

Because the practice has grown, of which the Minister is no doubt aware, of passing comprehensive legislation in this House, and then delegating the Government's functions under that legislation to a company.

May I make one reservation? I do not propose to hold myself responsible for the day-to-day management of the company. I am sure the Deputy appreciates that.

I do, fully. I do not think it would be reasonable to demand that this House should have the right to ask why a typist in a branch office of the company was dismissed. But, as the Minister knows, the practice has grown up of delegating the Government's functions to companies. By reason of that, when a Deputy seeks to raise some broad matter of policy, or some grave matter of administration in connection with a company, he is informed that the Minister disowns all responsibility. Parliamentary questions seeking to elicit information are ruled out of order. Let it be honestly stated that, I think, the precedent was first established in connection with the Electricity Supply Acts.

The precedent is one that has since been steadily built upon. It is one that, I think, ought to be very rigorously controlled and, if possible, abolished. If we are going to vote money for the operations of this company the Minister, I think, ought to answer to this House at regular intervals for the way in which the money is being spent. Unless we get an assurance of that kind, I do not think the House ought to vote the money. I strongly support Deputy Hughes's representations, not only for the reasons set out by him but for the additional reason, that I would like to see this company embark upon its career with a successful venture rather than in a fruitless pursuit of will-o'-the-wisps.

I should like to amplify what I have said in reply to a statement of Deputy Dillon as to whether the Minister, under this Bill, would be responsible to the House for the general operation of the company. I say: "yes". So far as the general policy of the company in the fulfilment of the purposes for which it was established is concerned, I, personally, will be prepared to answer to the House. The Slievardagh Bill marks a radical departure from, say, the principles on which the Electricity Supply Board was set up. The fundamental principle there was that the board was not responsible to the House, and, in fact, the whole financial structure was framed in such a way as practically to disqualify the Minister or the Government from accepting responsibility for the general policy of the board.

In this case, however—and it has been a matter, strange to say, of some criticism, not so pronounced here as in the Seanad—the financial structure of the Bill has been framed in such a way that the moneys required for the company will appear on the Vote for the Minister for Industry and Commerce. In defending that Vote, the Minister, naturally, will be required by the House to give an account of the company's operations, and will have to make himself responsible for the fact that, by asking the House to vote the moneys to finance the operations of the company, he is endorsing the policy of the company in regard to the objects for which it was established. The financial structure of this company has been framed in such a way as to make the Minister responsible to the House for the general policy of the company.

In regard to the criticism which Deputy Morrissey advanced in relation to the amount of money to be provided by the House for the company, a criticism which was re-echoed by Deputy Norton, I think Deputy Morrissey was under a misapprehension. Perhaps through some lack of clarity on my part, he misunderstood a statement I made with specific reference to Section 13 of the Bill. He misunderstood that statement in such a way as to take it as implying that the company would only be permitted to expend £3,000 in carrying out prospecting works during any year. The fact is that the general finances of the company are provided under Section 10, and under Section 10, as has been pointed out, it is lawful for the Minister from time to time to advance to the company out of moneys provided by the Oireachtas such sums, not exceeding in the aggregate £50,000, as the company shall require for purposes of its business. First of all, the limit of £50,000 is put in so that, if more is required for the business of the company, the Minister responsible will have to come here to the Dáil and, in formal debate—not merely upon an Estimate—upon all Stages of a Bill, have to justify any request for further money. It meets to that extent very fully the point raised by Deputy Dillon.

In case that the sum advanced in any year does not exceed £50,000 and the money is taken by instalments, then in every year, up to the year in which the aggregate of £50,000 has been reached and it becomes necessary to introduce a new Bill, the Minister will have to go to the Dáil for a grant of money. The point I am making is that the Minister may advance sums amounting in the aggregate to £50,000 for the general purposes of the company. The general purposes of the company are set out in Section 6 of the Bill, which enumerates the two principal purposes of the company as (a) to prospect for minerals wherever situated, and (b) to develop and work any minerals about which the company is satisfied as a result of their prospecting and deem it advisable to work. I do not think that Deputy Morrissey is one of those people who judge the utility of any operation or venture by the amount of money which it is proposed to spend. Certainly, in regard to a mining proposition, I do not rate the value of a project in proportion to the amount of money which has to be spent upon it: I rate the risks in proportion to the amount of capital expenditure required and, consequently, discount the value of the project accordingly.

As I was careful to explain—I think I could not have made it clearer—the main difficulty under which we are labouring in regard to our mineral resources is that, with the exception of those which were exploited in the middle of the last century and whose exploitation has ceased and has been abandoned as uneconomic, we know practically nothing about the extent of our mineral resources. We have geological indications, as I have said, that there are minerals here and there but no attempt has been made to assess the magnitude of those deposits and very few attempts have been made to assess in a commercial manner—as distinct altogether from a scientific manner—the absolute value of these mineral deposits. Therefore, the first task which this company has to undertake—and I am not putting this forward as any sort of grandiose project, I am putting it as a really practical proposition with no idea of window-dressing or of trying to sell a gold brick to the people of this country—is to supply us with the information which hitherto we have lacked—the information as to what really are the extent of those mineral deposits. Its primary task, therefore, is to prospect and survey such deposits as we know to exist. They are scattered here and there all over the country. To do that, the company is to be provided with a substantial amount of capital.

Perhaps the Minister would clarify that a little more. If the company is to be entitled to draw upon the £50,000 for prospecting work, what is the meaning of Section 13? I just require that as information.

I am dealing with Section 10 now, but we will come to that later. I am pointing out that, for general purposes, the company is to be provided with £50,000. The board will be constituted from people well qualified to undertake this work, to the extent to which such people are available here. They are not very numerous and there are but few who have real and practical experience and scientific training in mining operation and in prospecting work. To the extent, however, to which they can be got and are available, they will be represented on the board. The board will have submitted to it all the information we have in the geological survey regarding our mineral deposits, and the directors will have to come to a definite decision themselves as to which of these deposits are the most promising and which of them, in all the circumstances in which they find themselves, might be tackled first. When they have come to that decision, they have a fund of £50,000 wherewith they may engage the necessary specialised labour and specialised services to enable them to prove these deposits. That is the normal work of the company and the normal responsibility of the board.

Apart altogether from that, it may happen—as it has happened—that there may be differences of view. We in the Government Department, upon information submitted to us by our people, may think that there are deposits which the company should examine simultaneously with the deposits which it may regard as being more valuable and more essential. We, under Section 13, will have power to require the company to undertake, not directly by itself but by employing skilled agents, the prospecting of these particular deposits. That is a special service which the company is being asked to undertake at the request of the Minister. When such a request is made to the company, then the Minister will be required to defray the cost of that prospecting and will defray it out of the £3,000. It is merely to indemnify the company to the extent of £3,000 for the expenses of complying with the request of the Minister to prospect in any particular area or for any particular purpose. But the company itself will have general responsibility, so far as the general prospecting is concerned, for selecting the projects which appear to it to be most promising and most necessary. We shall naturally represent to them that in present circumstances there are very definite needs to be met in the country, but I shall not take upon myself the responsibility of overriding what I think will be the better opinion of the board as to the wisdom and practicability of investigating certain propositions in priority to others.

If, for instance. I did say: "We want you to go ahead and try to prove Clare phosphates more intensively," and if the company were to say: "Well, we think it is no use wasting our time upon these because we have geologists on our board and we think it would be better if the capital of the company were to be spent in, say, exploring for pyrites or copper or something else," and we should still say: "Nevertheless, we think, in present circumstances, Clare phosphates ought to be exploited," then, under Section 13, we should have to indemnify the company against the expense of undertaking the exploitation of the Clare phosphates. Let it be understood that when I mention Clare phosphates, pyrites, copper, these are merely mentioned as examples and are not to be taken as being anything more than exemplifications of the sort of discussion which might take place.

Might I ask the Minister a question now?

In view of what he has said—because he has been extremely cautious in the language he has been using—does the Minister conceive any possibility of this company mining minerals and making them merchantable, say, within 12 months or 18 months or two years?

On that I am not going to express any very positive opinion but—I may say this quite frankly—I do not think that, in the present condition of most of our mineral deposits, there is very much chance at this present moment of any company with such resources as we can provide making any of them merchantable within, say, 12 months.

That is my own view too.

Again, let me come back. As I say, the primary task of this company will be to carry out explorations which Government Departments in general are not equipped to undertake, or are not organised to undertake, but which are essential as a first step if we are going to proceed with any mineral development in this country. If, in the course of carrying out these prospecting operations, the company does prove that there is a valuable mineral deposit which can be developed in present circumstances then the situation changes. I am not going to suggest, for instance, that if the company, as a result of having spent £5,000 or £6,000 in prospecting work, establishes that there is a deposit of copper or of iron which could be worked but which would require the expenditure, perhaps, of capital running into hundreds of thousands of pounds — perhaps even less—I do not want to talk flamboyantly about these matters—but which, say, would require the expenditure of capital even amounting to £50,000, that the company is going to have to find that £50,000 out of the resources provided under this Bill. Immediately a proposition of that sort came along we should have to consider whether it might not be better, rather than to leave it to this company, whose general job would be to explore and to prospect rather than to run mining enterprises itself, to try to form a subsidiary to this company, again, perhaps, under an Act of this House, or whether we should not find some other way of dealing with a large-scale project of that kind.

These are matters which you can only consider when you have got a definite mineral proposition before you, which you cannot consider in vacuo and for which we could not make provision in a Bill of this sort in advance, for the simple reason that you do not know what the features of any particular mineral proposition are going to be when it emerges from the prospecting stage. In the light of this, I cannot see what substance there was in the criticism that we were not providing enough money under this Bill. The Department of Industry and Commerce within the past seven or eight years has carried out three or four very extensive mineral surveys. I think the most expensive of them did not cost more than £13,000. Mind you, if the company is able inside one year to set on foot two or three or four of these surveys it will be doing well because, first of all, it will have to satisfy itself about the wisdom of undertaking these surveys. It will then have to employ the specialists who undertake work of this kind and perhaps even to get special scientific advice in relation to a particular mineral deposit which they are going to investigate. The company will be doing a great deal of work, in my view, if it is able to employ the whole of this £50,000 in one year in prospecting work of this kind. But it may happen, and in fact we contemplate that, in the peculiar circumstances of this moment, in order to meet an urgent need, the company may have to take over some existing deposits: first of all, to work them more efficiently; secondly, to prove the true extent of them, and then, perhaps, to undertake certain scientific investigations in order to see whether these deposits could not be better utilised to meet national needs than they are being used at present. Provision for that is being made in the Bill.

Deputy Corry has referred to the Cloyne Colloidal Clay Company. The history of that company exemplifies the need for having some sort of undertaking such as we are now asking the Dáil to establish. Now that was a case—I do not know the original history of the original leases; certainly they were not purchased from the State for £100, because the State could not sell them under the Constitution, but it is possible that the rights of certain individuals may have been bought and transferred to the State for £100—that was a case, however, where you had a number of well-meaning persons—one or two of them, perhaps, with a number of friends around them—who went in and started to work this particular deposit It was a rather unique deposit, for the first thing the company had to do, I think, was to see how that deposit could be utilised to the best advantage. There was a hazy idea, I think, that it could be utilised for the manufacture of pottery, but it was found that, in order to do so, the whole process of the manufacture of pottery would have to be changed, and a great deal of work and a very great deal of money was spent in trying to get certain potters in England to consider the question of the utilisation of this material at all. At the same time, you had men who had other interests in other concerns, and, judging by what I have learned since of the lay-out of the company, you had things done without any of the truly skilled supervision which ought to have been given.

However, it was just simply a sample of the sort of mining projects which have been undertaken in this country from time to time: where you get men with enthusiasm, with a certain amount of money and a great deal of energy, but with very little, or practically no, knowledge of the job they are tackling. These people go down and get hold of a concession, —simply because, at that stage we were in the position that we would like any private individual to come along and prove that mineral deposits in any part of this country were capable of development—and then, on the basis of their energy and enthusiasm—they try to muddle through in the hope that they will strike it rich, or at least that they will learn something about the business and be able to establish it on a sound basis. The unfortunate thing about it is that, as in the case of the Cloyne Colloidal Clay Company, there have been more failures than successes, and I have come to the conclusion that the first thing that we have got to do is to try to learn more about our own mineral deposits, particularly as to their commercial extent and value, and also as to the possibility of applying to them modern methods of exploitation. That is the main purpose of this company. It has a subsidiary purpose, for where there are mineral deposits which are essential for the life of the community, the company will be empowered, if I am convinced the need exists, to take over from the Minister these deposits and try to work them more effectively; but the main purpose of the company will be to try, as I said at the beginning, to get at the truth with regard to the extent and variety of our mineral deposits, and they will have to do that on the basis of all the knowledge which is available in the Geological Survey.

I have been criticised because I have not put before the Dáil certain specific propositions which the company propose to tackle. It is true that I have not mentioned specific proposals, and I have done that deliberately because I do not think it is in the public interest at this moment to dangle before the eyes of those who think they own or who, in fact, do own, mineral deposits, the possibility that these deposits are going to be bought over by the State at inflated values, nor am I going to say anything that would encourage people to place obstacles in the way of the operation of this company. One of the things that may happen is, that the moment the company starts to operate, you will have people jumping in and saying that they have prior claims. Now, I do not want to have people starting out to try to shut out this company, because this company is going to work in the interest of the nation as a whole. It is going to deal with substances which have been lying there for a long time; since the beginning of time. One might say, in some cases, at any rate, they have not been worked before this, and if we were to indicate that we were interested in these deposits in one particular place, that place might immediately acquire an inflated value at the expense of our own people. Accordingly, I have been very general in my remarks on this stage of the Bill, and I hope the House will permit me to be equally, general in this matter during the succeeding stages of the Bill, because I think it is in the public interest that I should be allowed to do so.

Will the Minister's speech on the next stage be more informative than the speech he has just made?

As I have said, I should prefer to be general in my remarks.

That is a good thing.

Question put and agreed to.
Committee Stage ordered for Thursday, 8th May.
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